HC Deb 30 January 1990 vol 166 cc171-3W
Mr. David Evans

To ask the Secretary of State for the Environment what responses he has received to his consultation document on cost recovery charging for Her Majesty's inspectorate of pollution's implementation of integrated pollution control; and if he will make a statement.

Mr. Trippier

I received responses from 53 organisations and individuals. A list of these has been placed in the Library of the House. Copies of individual responses are available through the Library.

Respondents generally agreed the suggested basic structure of an initial charge for each application for an IPC authorisation and an annual charge thereafter. Respondents underlined that the system should be as simple and practicable as possible.

Respondents' comments have led us to reconsider the proposals in the consultation document for differential charges for different categories of authorisations. We now propose that there will be one flat rate initial charge per specified component of a process for each application for an authorisation.

There will also be a flat rate once-and-for-all charge for subsequent substantial changes in either the firm's operations or in pollution standards which require a fresh authorisation to be drawn up. There will be no charge for non-substantial changes that do not necessitate a fresh authorisation. There will be a lower flat rate charge in the case of the conversion of an existing statutory approval into an IPC authorisation. There will be an annual charge per component of an authorised process to cover costs of inspection, monitoring and enforcement.

This system, based on the number of components for a process, is simple, whilst also relating firms' charge payments to their scale of operations and Her Majesty's inspectorate of pollution's costs of regulation. Larger and more complex installations involve a larger number of components. For example, a steel works will typically involve 20 or more components, whereas a metal plating works may involve only one component and will pay correspondingly smaller charges.

Her Majesty's inspectorate of pollution will monitor its resources employed in dealing with different categories of authorisation to check for anomalies. The structure and level of the charges will then be reviewed in the light of experience. We will consider further developments as necessary, including the merits and practicalities of individual billing, which some respondents to the consultation paper favoured.

The charging system for IPC will be compatible with other charging systems, notably HMIP's charges under the Radioactive Substances Act 1960 and those for the NRA. There will be a broadly compatible charging scheme in respect of the new local authority air pollution controls under part I of the Environmental Protection Bill.

These proposals will cover operations in England and Wales. Comparable proposals are being considered for pollution controls in Scotland. Legislation for introducing integrated pollution control and a related charging system in Northern Ireland is being considered.

My officials will be consulting with industry and other interested parties as they work up the details of the charging scheme, with a view to its introduction in April 1991.

This new charging system will underline the Government's commitment to the principle that the polluter pays.